Food and Beverage Management
International Food and Beverage Management
2208 HSL
Individual Written Assignment
Semester 1, 2009
Food and Beverage Management within the hotel industry has changed dramatically over the years. This can be seen through a number of measures, although only in more recent years, particularly in outsourcing. This essay will discuss the implications of outsourcing various elements of hotels’ food and beverage operations. It will go into further detail on the certain theories based around the decision making for whether to outsource or to produce goods and services on one’s own. It will then discuss past research and implications outsourcing has on the hotel industry.
At the current period of time, there has been a reduction of economic activity all over the world. Having just entered recession in Australia, with unlikely expectancy to climb out of recession until mid 2010. This will and is having as impact on jobs, retail, business and the industry that can be seen in a light of luxury, hospitality and tourism. In fact it has been said by BNET Industries that ‘outsourcing helps close the financial gap’ (Gordon, P 2003, p.1). With tough economic times the hotel industry has to do something more, to improve the financial flow or lack there of, in which means changing how the industry operates.
Within this essay outsourcing is defined “as the process whereby activities traditionally carried out internally are contracted out to external providers” (Wood, RC 2007). It can be seen in many different forms of inter-firm relationship such as joint ventures, alliances, partnerships, shared service arrangements, franchising and virtual organisation. It has been said that many hotel operators have one key focus; hotel rooms and therefore lack of attention on the element of food and beverage. The restaurant can be seen as an undervalued asset by a lot of hoteliers. Without the realisation that
2208 HSL
Individual Written Assignment
Semester 1, 2009
Food and Beverage Management within the hotel industry has changed dramatically over the years. This can be seen through a number of measures, although only in more recent years, particularly in outsourcing. This essay will discuss the implications of outsourcing various elements of hotels’ food and beverage operations. It will go into further detail on the certain theories based around the decision making for whether to outsource or to produce goods and services on one’s own. It will then discuss past research and implications outsourcing has on the hotel industry.
At the current period of time, there has been a reduction of economic activity all over the world. Having just entered recession in Australia, with unlikely expectancy to climb out of recession until mid 2010. This will and is having as impact on jobs, retail, business and the industry that can be seen in a light of luxury, hospitality and tourism. In fact it has been said by BNET Industries that ‘outsourcing helps close the financial gap’ (Gordon, P 2003, p.1). With tough economic times the hotel industry has to do something more, to improve the financial flow or lack there of, in which means changing how the industry operates.
Within this essay outsourcing is defined “as the process whereby activities traditionally carried out internally are contracted out to external providers” (Wood, RC 2007). It can be seen in many different forms of inter-firm relationship such as joint ventures, alliances, partnerships, shared service arrangements, franchising and virtual organisation. It has been said that many hotel operators have one key focus; hotel rooms and therefore lack of attention on the element of food and beverage. The restaurant can be seen as an undervalued asset by a lot of hoteliers. Without the realisation that
References: Bolat, T & Yilmaz, O 2008, ‘The relationship between outsourcing and organisational performance, is it myth or reality for the hotel sector?’, International Journal of Contemporary Hospitality Management, vol. 21, no. 1, pp. 7-23. (fnb8) Donada, C & Nogatchewsky, G 2008, ‘Emotions in outsourcing. An empirical study in the hotel industry’, International Journal of Hospitality Management, vol. 24, no. 3, pp. 78-98. (fnb9) Espino-Rodriguez, TF & Padron-Robaina, V 2005, ‘A resource-based view of outsourcing and its implications for organisational performance in the hotel sector’, Tourism Management, vol. 26, no. 5, pp. 707-721. (fnb6) Espino-Rodriguez, TF & Padron-Robaina, V 2004, ‘Outsourcing and its impact on operational objectives and performance: a study of hotels in the Canary Islands’, International Journal of Hospitality Management, vol. 23, no. 3, pp. 287-306. (fnb11) Gordon, P 2003, ‘Hotel outsourcing helps close the financial gap’, BNET Australia, June, pp. 16-18. (fnb3) Hemmington, N & King, C 2000, ‘Key dimensions of outsourcing hotel food and beverage services’, International Journal of Contemporary Hospitality Management, vol. 12, no. 4, pp. 256-261. (print version) Lam, T & Han, MXJ 2005, ‘A study of outsourcing strategy: a case involving the hotel industry in Shanghai, China’, International Journal of Hospitality Management, vol. 24, no. 1, pp. 41-56. (fnb10) Wood, RC 2007, ‘The future of food and beverage management research’, Journal of Hospitality and Tourism Management, vol. 18, no. 3, pp. 28-45. (fnb5)